tv Nightly Business Report PBS August 9, 2017 5:00pm-5:31pm PDT
this is "nightly business " with tyler mathisen and sue herera. >> change in tone. stocks flip. gold gains and investors turn cautious as tensions mount. >> why disney may have taken the first step in changing television as wep it. >> older americans sometimes need health care related health in their home. enter alexa. amazon's voice act master's degree tonight on wednesday, 9th. >> good the old cliche about stocks is that they climb a wall of worry o worry about this year and for the most part, the stock market has stayed true to the
cliche. it kept on climbing, but in the past 24 hours as u.s. north korea tensions heightened, the waf worry got steeper. they p yests day retreat and moved ever so slightly into textbook safe havens like gold and bonds. the moves were thnot big, but north korea is on investor's radar now and as one strategist put it, geo politics is spla dropped to 22,048. nasdaq fell 18. s&p 500 was off a fraction. earnings hs of the market for while they are still important, investors are also paying attention to bigger, broader issues. bob pisani explains. >> here's a rare event. stock concerns about north korea, but also on the state of poor earnings. so far, this summer has been
a -- market. nothing has offered to slow upward course of stocks. ife mart shifting focus? for the moment, the market seems are small.that the risk of this major indices were down fractionally and markets here and volatility roaming elevated. so, north korea, the problem is is, is not the only big issue. had authorized an increase in the debt ceiling when it returns from its recess in december. raising the ceiling is not a big issue, it's been done before, chance congress plicated this wo pass a clean bill. they might pass a bill with all sort of conditions on it that will create g is mott raised, there's a small possibility could default. without default, a long fight over raising the debt ceiling is a bad idea. this happened in 2011.
a similar fight led standard & poor's to downgrade the credit rating of the united states. it's di tint from adopting the u.s. budget and that, too, has to be addressed. conservatives are already demanding cuts in the budget and if they don't ashurns the cuts are forthcoming, they may not support raising the debt ceiling. it's a mess and makes forecasting the stock market moves in the fall a lot t nory d be. i'm bob pisani at the new york stock exchange. >> so, what will will shift if focus in the markets mean for you and your investment? patrick is the chief strategist with silver crest asset management and joins us now. p up what bob ice mentioned, which is the debt t c something that'se market as on our screen. the,
we've always fixeded and often, they fixed it at the 11th hour, but it doesn't fix itself and congress has missed one deadline it set for itself, which was to do it before august recess. and when they get back in september, they've got about month and they start missing payments. which is serious indeed. >> we made a point to point out that selling today in the equity markets is minor.it not a torre, but do you think that people looked at to the rising tensions with north korea and those who were inclined to sell saw that as the excuse or reason to do so? >> so, we're already seven or eight years into a bull market. and the price of stocks right now is closer to what it would be like near the end of a bull . so there aren't a lot of deals out there. so people look for a reason to mayb
remember, just in the past two years, there have been two big sell offs, both of which were triggered by china, then the market rebounded. so, unless you have, the thing people are worried about, unless it follows through into a recession or something longer lasting, the market tends to rebound. >> so, are you finding places to put money to work? we have there's a big divergence on the street as to whether the market is fairly valued or overvalued. which cam would you be in? >> you know, it's tough right e a lot of deals out there,there but relative, the thing to remember is relative to safe harbors like treasuries, which are paying barely above the rate of inflation, compared to that, stocks are still relatively cheap historically. that doesn't mean they are cheap, it just me mig a lot of return if you
go and look for a safe harbor right now. >> all right, on that note, thank yo with silver crest asset management. the worst performing stock on the blue chip dow index today was walt disney. this following the earnings we told you u about l.a. nigt nigh. we also told you they plan to launch movies and tv shows and it could usher in a big change for te explains. >> disney's ceo bob iger announ content direct to consumers and reduce the reliance on the tv bundle. planning to launch a new direct to consumer espn service early next year. disney is also using this technology to move away from netflnd netflix in 2019 to launch it own app that year. l include the sequel to
frozen and "to. >> the investment we're make ng this platform is significant. not everyone has, not all companies have access to that y vital to what we're doing and not all companies have the kind of brands that we have. whether it's espn or disney or pi a a competitive advantage. >> the question is what competitive advantage the new espn service has. espn has been in the spotlight. the most expensive channel in bundle, it was two years ago that iger wag a comment that sent all media stocks reeling and though the core content won't be available as part of the new sports subscription app next year, disney is leaving the door ope with espn, the new service, is is just the beginning.
>> this accelerates this wave that is is seen as a threat to the traditional tv bundle. as you get the disneys of the over the top subscription services, sports separated from the entertainment, others will respond. fox isn't going to sit still. they'll respond. discovery is responding. cbs is responding. >> on s boasting about its all access and showtime streaming services on track for 4 million subscribers this year, faster than expected. cbs ceo saying its upcoming "star tr will help add new subscribers. the show will angel be available on its app not on traditional tv. for "nightly business report", i'm julia boorstin in los angeles. 21st century fox's cable division rose doun quarter and that off set a cline in revenue.
the fox con plant in wisconsin is not yet a done deal. the electronics manufacturer has pledged to invest $10 billion to build a factory in that state, potentially creating thousands of jobs, but the 3 billion in incentives promised by the governor must be approved by the wi republin lead ner the state is that the said it doesn't look like he has the approve the > fbi agents conducted a raid on the home of president t former campaign manager. authorities executed a search warrant on his home in late july shortly after he registered as a foreign agent. the raid stem frs the ongoing invests meddling in the 2016 presidential election and possible collusion between the campaign and rus gove a spokesperson for manafort says he has been cooperating. congressional leaders say
they want to create a simpler tax code that eliminates a lot businesses. many of those are popular, them, to how much, which means yo simplify the u.s. tax code by closing a laundry list of loopholes. there are roughly 200 of them and getting rid of them would raise an estimated $18 trillion over the next decade. the cash foundation ranks the big igest carvefi households no 15.6 trillion versus just 2.7 trillion over e decade. the largest loophole is the ability to exclude employer contributions to your health care premiums from not taxed on the money they pay toward your medical benefits and that's worth an estimated 2.9 trillion.
five on age interest deduc the list. at 895 billion. on the corporate side, the gia defer taxes co th costs 1.3 trillion in federal revenue. accelera deprecin is worth 164 billion and is also an incentive for companies to manufacture in america as worth ab152 billion. those are the biggie, but just the tip of the iceberg. also carveouts for railroad retirees and foster care. they say wiping these out will free up money to pay for a tax cut insteas extremely unlikely they'll all go away. that's because there's a very vocal and often very valid constituency to fight for each first place.
office depot struggles to bring in customers. the office supplies retailer said traffic stallt shoppers who tid make purchases spent less. that led to lower earnings, which missed expect lower sales for the full year. shares plunged almost 26% to $4.53. vitamn shop posted a loss and suffered a drop in sales as its products in the sports category faced heightened competition. they cut their same store sales outlook for the year, but sai i performance. investors didn't want to hear it. sending shares down 36% to $6 0 and after reporting results that missed expectations, mylan cut its profit outlook for this year and next. the company cited falling
generic drug prices hindering new drug launches. the company is pushing back all major product launches until next year. mylan shares rose almost 1% to 3i$.08. giant preparing to buy charter communications. they haven't officially presented a bid just yet. shares of charter rose nearly 3%. wendy's said it had fewer company owned restaurants in operation in the latest quarter. that caused revenue to slip. but a rise in franchisee or franchise revenue, helped off estimates. profit at the chain also beat street targets and a shares po ed to $15.81. despite higher 's place mi revenue. but the company beat earnina of 40 cents a share.
shares of the children's place off 4% to 112.60. and fossil saw weakness in all pr as it reported a loss. fossil said it sees revenue falling as much year. much more than thought and shares get this, down a quarter today. losing 25% of their value to fin 8.87. some of the country's biggest tech companies are making a big push into health care. like google and apple. and now, it's amazon's turn. that company is trying to help older americans stay healthy with its voice activated assistant, alexa. >> what are my activities for today? >> your activities today include two medication reminders. >> she was skeptical when her sig her up for a trial
using an echo dot. >> i didn't understand why i needed this. >> she soon became a fan of how much easier it is to get help when she needs it. t if i i've fallen, i have thi oftentimes takes a while for them to answer and find out what my probl aides at liberty home health say it helps them be more respoe to client's needs and family care dpifrs. >> we can give access t.o. family members, the same access we have to be able to check and see how the clients doing, how their mom is doing, to free up time to socialize with their families and not. the program was designed by a 2-year-old boston start up. >> alexa, start orbita. >> orbita, a voice platform deh firms. >> voice is becoming that next
wave of how can we engage. >> it really means that you're lowering the friction for people to be able with something. >> they're working with programs with clients like hospitals to track patient health at home drug makers to collect data from trial participants. >> you have to make the information your collection actionable, so our system can notify an accounts records system. >> they're not working on cozo google's verily and apple's voice technology combined with machine learning could be a game changer in consumer health. >> the ability to inte individu their data and the world's medical literature, no one has be a race e between the likes of amazon,
apple anha s security issues with alwa is going to be a whole new look at privacy, hippa regulations. >> it's still early, but the number of major insurers say they are look iing at posol pop. to help seniors age in place and home and not in a facility and feeling connected like yvonne feels. >> i think of her as a person, but she's really just a machine. >> one who hds bertha coombs, "nightly business re and for more on how amazon's alexa and the other tech companies are getting into health care, head to our website. who's invested in ure capit some of biotech's biggest stories, now, he's in a race for
a cure, trying to raise m other. meg has our story. >> making smart bets on potential new medicines is how health care venture capitalist jonathan silversteen built a a eer. specialist i saw a slight tremor in my left leg, he was able to put it together and say they're parkinson's. >> for other forms, there are no drugs arooufed to cure it or even slow its course, so jonathan and his wife, natalie, decided to take action. >> given the fact that jonathan works in this space, we sor of uniquely positioned to potentially make a difference. >> they founded the silversteen with $10 million of their own sent out 1,000 letters to
venture capitalist, ceos, literal does ps of ideas. >> he had been traveling the world. >> i got a letter from a guy named mike in ohio. sent me a check for $18. he said, i've got parkinson's, let get it done. and that is as good a motivation as anything. >> right. >> he knows but he's also helped fuel advancement of successful medicine. >> i've seen miracles happen. and now i've got to create another miracle. >> he knows time isn't on his side, but in his quest for curep for "nightly business report", i'm meg terrell. >> you can read more about his stnbr.com. still ahead, why the threat of amazon looms large over blue
apron's first earning's report. and here's a look at what to watch tomorrow. retailers will be in focus. macy's, kohl's, nordstrom, they all report earnings. on the economic front, we'll release of the lation is ticking index and the president of the new york fed will speak on wage and inequality. well, there'd tt earnings from blue apron. it's the first time t meal kit company will update investors
since late june. since then, investors have taken a cleaver to blue ape on share, which ca >> blue apron's top grafts seemed jub lent at the new york stock exch the day the company went public. but things turned rocky quickly. in the nearly six weeks since blue apron initial public offering, shares of the meal kit compd are now trading about 40% below their ip less than a month after the company went pibl, matthew stepped down from chief operating officer to senior a worried about competition from amazon which announced the deal whole foods and has launched its own meal kit service. on the day blue apron stocks
started tr the ceo addressed amazon's acquisition of whole foods. >> in some ways, amazon is an ally for us in ts fight. one of the biggest challenges blue apron has had is convincing people that we're traditionalists who go to the store week over week, touch their food, feel their food before they buy it and go home with it. value.ou buy it online, i >> analysts are still bullish on the stock. market potential as high as $1.3 trilli. some are also hopeful blue apron will increase its customer r growth and retention numbers in be listening for
offerings as a way to m adidi roy san francisco. >> i've used the competitor to blue apron. t meals. they're very, very good, the only problem is they tell you it will take you ten or 25 minutes. it's a lot more than that. at least for me, it is. >> i think it would for me, too. that does it for us tonight. seeksr to remind you, this is support. >> we thank you for your support. have a great evening, everybod.
steves: since the romantic era in the 19th century, luzern has been a regular stop on the grand tour route of europe. [ whistle blows ] its inviting lakefront now includes a modern concert hall, which incorporates the lake into its design. the old town, with a pair of picture-perfect wooden bridges, straddles the reuss river, where it tumbles out of lake luzern.
the bridge was built at an angle in the 14th century to connect the town's medieval fortifications. today, it serves strollers, rather than soldiers, as a peaceful way to connect two sides of town. many are oblivious to the fascinating art just overhead. under the rafters hang about 100 colorful 17th-century paintings showing scenes from luzern and its history. this legendary giant dates to the middle ages, when locals discovered mammoth bones, which they mistakenly thought were the bones of a human giant. here's luzern in about 1400, the bridge already part of the city fortifications. and luzern looked like this in 1630. luzern is responsible for controlling the lake level. by regulating the flow of water out of its lake, the city prevents the flooding of lakeside villages when the snow melts.
in the mid-19th century, the city devised and built this extendable dam. by adding and taking away these wooden slats, they could control the level of the lake. swans are a fixture on the river today. locals say they arrived in the 17th century as a gift from the french king, louis xiv, in appreciation for the protection his swiss guards gave him. switzerland has a long history of providing strong and loyal warriors to foreign powers. the city's famous lion monument recalls the heroism of more swiss mercenaries. the mighty lion rests his paws on a french shield. tears stream down his cheeks. the broken-off end of a spear is slowly killing the noble beast. the sad lion is a memorial to over 700 swiss mercenaries who were killed, defending marie antoinette and louis xvi during the french revolution. the people of luzern take full advantage
of their delightful river with a variety of cafes and restaurants along its banks. this evening, we're enjoying the setting as much as the food. i'm having the local pork. my producer, simon, is having eel, fresh from the river. with a picturesque setting like this, the dining experience makes for a wonderful memory.
this is a bbc america. funding of this presentation is made possible by. the freemen foundation. and coal fuller foundation pursuing solutions for america's neglected me. planning a vacation escape that's relaxing inviting. and exciting. is a lot easier than you think. you can find it here in aruba. families couples and friends can all find their escape on the island